Thinking Beyond Science

Diversity helps because it actually adds perspectives that would otherwise be absent and because it takes away, or at least weakens, some of the destructive characteristics of group decision making. Fostering diversity is actually more important in small groups and in formal organizations than in the kinds of larger collectives like markets or electorates that we’ve already talked about for a simple reason: the sheer size of most markets, coupled with the fact that anyone with money can enter them (you don’t need to be admitted or hired), means that a certain level of diversity is almost guaranteed.

Markets, for instance, are usually prima facie diverse because they’re made up of people with different attitudes toward risk, different time horizons, different investing styles, and different information. On teams or in organizations, by contrast, cognitive diversity needs to be actively selected, and it’s important to do so because in small groups it’s easy for a few biased individuals to exert undue influence and skew the group’s collective decision.

The fact that cognitive diversity matters does not mean that if you assemble a group of diverse but thoroughly uninformed people, their collective wisdom will be smarter than an expert’s. But if you can assemble a diverse group of people who possess varying degrees of knowledge and insight, you’re better off entrusting it with major decisions rather than leaving them in the hands of one or two people, no matter how smart those people are. If this is difficult to believe in the same way that March’s assertions are hard to believe-it’s because it runs counter to our basic intuitions about intelligence and business.

Suggesting that the organization with the smartest people may not be the best organization is heretical, particularly in a business world caught up in a ceaseless “war for talent” and governed by the assumption that a few superstars can make the difference between an excellent and a mediocre company. Heretical or not, it’s the truth: the value of expertise is, in many contexts, overrated.

More important, there’s no real evidence that one can become expert in something as broad as “decision making” or “policy” “strategy.” Auto repair, piloting, skiing, perhaps even management: these are skills that yield to application, hard work, and native tal-ent. But forecasting an uncertain future and deciding the best course of action in the face of that future are much less likely to do so. And much of what we’ve seen so far suggests that a large group of diverse individuals will come up with better and more robust forecasts and make more intelligent decisions than even the most skilled “decision maker.”

In part because individual judgment is not accurate enough or consistent enough, cognitive diversity is essential to good decision making. The positive case for diversity, as we’ve seen, is that it expands a group’s set of possible solutions and allows the group to conceptualize problems in novel ways. The negative case for diversity is that diversity makes it easier for a group to make decisions based on facts, rather than on influence, authority, or group allegiance.

Homogeneous groups, particularly small ones, are often victims of what the psychologist Irving Janis called “groupthink.” After a detailed study of a series of American foreign-policy fiascoes, including the Bay of Pigs invasion and the failure to anticipate Pearl Harbor, Janis argued that when decision makers are too much alike—in worldview and mind-set—they easily fall prey to groupthink. Homogeneous groups become cohesive more easily than diverse groups, and as they become more cohesive they also become more dependent on the group, more insulated from outside opinions, and therefore more convinced that the group’s judgment on important issues must be right. These kinds of groups, Janis suggested, share an illusion of invulnerability, a willingness to rationalize away possible counterarguments to the group’s position, and a conviction that dissent is not useful.

The important thing about groupthink is that it works not so much by censoring dissent as by making dissent seem somehow improbable. As the historian Arthur Schlesinger Jr. put it, “Our meetings took place in a curious atmosphere of assumed consensus.” Even if at first no consensus exists only the appearance of one- the group’s sense of cohesiveness works to turn the appearance into reality, and in doing so helps dissolve whatever doubts members of the group might have. This process obviously works all the more powerfully in situations where the group’s members already share a common mind-set.

Because information that might represent a challenge to the conventional wisdom is either excluded or rationalized as obviously mistaken, people come away from discussions with their beliefs reinforced, convinced more than ever that they’re right. Deliberation in a groupthink setting has the disturbing effect not of opening people’s minds but of closing them. In that sense, Janis’s work suggests that the odds of a homogenous group of people reaching a good decision are slim at pal.

One obvious cost of homogeneity is also that it fosters the palpable pressures toward conformity that groups often bring to bear on their members. This seems similar to the problem of groupthink, but it’s actually distinct. When the pressure to conform is at work, a person changes his opinion not because he actually believes something different but because it’s easier to change his opinion than to challenge the group.

Source : The Wisdom of Crowds by James Surowiecki

Goodreads : https://www.goodreads.com/book/show/68143.The_Wisdom_of_Crowds

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